What is the new price of the stock

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Reference no: EM13327398

ABC Company
Balance Sheet
December 31, 20xx

Assets

Liabilities and Equity

Cash

$10,000,000

Accounts Payable

$20,000,000

Accounts Receivable

250,000,000

Long-term debt

400,000,000

Inventory

120,000,000

Common Stock ($10 par, 1,000,000 outstanding)

10,000,000

Plant and Equipment

325,000,000

Paid-in capital

90,000,000



Retained Earnings

185,000,000

Total

$705,000,000

Total

$705,000,000

The current price of a stock is $58 per share.

Required:

  1. Construct a balance sheet after a two for one stock split. What will be the new price of the stock?
  2. Construct a balance sheet after a 5% stock dividend. What is the new price of the stock?
  3. Construct a balance sheet after a one for two reverse stock split. What is the new price of the stock?
  4. Construct a balance sheet after a $3 per share cash dividend. What is the total cash dividend?

 

Reference no: EM13327398

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